CHINA'S Hanlong Mining has reduced its offer for Sundance Resources to $1.37 billion, a 21.5 per cent shaving on its earlier 57-cents-a-share bid offer, people familiar with the matter said.
It is the second time Hanlong has reduced its offer this month amid weak iron ore prices. On August 1, a separate person familiar with the matter said Sundance's board of directors was prepared to recommend a reduced offer of 50c a share.
The latest offer stands at 45c a share, one of the people said, adding that negotiations were continuing.
It is the second time Hanlong has lowered its offer for Sundance this month amid weak iron-ore prices. The revised deal would value the target at $1.37bn, a 21.5 per cent discount to the earlier recommended offer.
The latest offer stands at 45c a share, one of the people said, adding that negotiations were continuing.
John Corr, chief investment officer and MD of Sydney-based Fortitude Capital, a Sundance shareholder, told the Wall Street Journal the majority of existing shareholders would welcome a discounted deal.

 "The price has been telling you there will be no deal at all, so a deal at 45 cents isn't disappointing, given what's happened in the sector," Mr Corr said. "This transaction might change the approach Australian companies have to Chinese corporates as buyers of assets."
Negotiations over the offer price were continuing, one of the people said.
Sundance earlier this month said China's National Development and Reform Commission had provisionally approved Hanlong's proposed takeover of the ASX-listed iron ore explorer, on the condition the acquisition price was "reasonable".
Sundance, which owns the Mbalam iron-ore project on the border of the Republic of Cameroon and the Republic of Congo, has targeted November to complete the takeover.
Mbalam aims to mine 35 million tonnes of iron ore annually, making it an attractive prospect amid efforts to reduce China's dependence on Australia for the key raw materials used in steelmaking.
Sundance shares, which remain suspended amid the continuing negotiations, last traded at 33.5c.